This morning, the City of Alameda announced that a federal judge has thrown out a lawsuit claim by former would-be Alameda Point developer SunCal, which had sued the city for $100 million in lost profits.
According to a prepared statement from Alameda City Hall, United States District Court Judge Charles Breyer dismissed the suit, ruling “that future anticipated profits could not be recovered under California law because there had been no agreement or approval as to the development plan. He stated that future profits would be speculative since it was not certain that there would have been an agreement on the development plan.”
SunCal had threatened to bankrupt the City of Alameda over its dismissal from the Alameda Point project.
“This decision significantly reduces the potential City exposure in the matter,” said City Attorney Janet Kern.
However, the city is not off the hook yet, as the court must yet rule on SunCal’s claims against the city for $17 million in pre-development expenses.
The case continues through next week and beyond.